When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business. In reality,...
Few investors these days have the time or patience to read a full business plan, so a better way to catch their eye is...
Venture capitalists sometimes make an error in directing their portfolio company CEOs to push resources to the limit and scale the business to immense size quickly, all to seize market share.
One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round.
The average length of a funding pitch to Angel investors is ten minutes. Even if you have booked an hour with a VC, you should plan to talk only for the first fifteen minutes.
Investors as a group have a common gripe—almost universal. Information flows from the company irregularly, in fact most often when the company is urgently in need of more money.
Don't confuse the two: A pitch to be read must be very different from a pitch that supports a live presentation with you talking. Different media, different styles.
No matter what your size, if you intend to grow your business into more than just a lifestyle workplace, you should create a board of directors. If you take money from knowledgeable investors, you will be required to create a board as a part of the investment process.
If you aren't willing to take some risk as an entrepreneur, then don't expect any gain. Yet everyone has limits, and every investor implicitly has similar limits on what makes a startup investable, or one to avoid at all costs. If you need investors, it's important that you understand their filters, and even if you are funding your own efforts, you need to recognize the red flags.
What do venture capitalists and angel investors cite as the common cause of the failures in their portfolios? That's a great question, which somebody posed in Quora. And as I write this post, it has several really interesting answers.